ETF Edge: February 2012
Welcome to the February edition of ETF Edge! The first trading month of 2012 was abundant with gains across equity markets as uncertainty appears to be slowly evaporating from the economic landscape. Developments at home have been overwhelmingly positive; investors have rejoiced over better-than-expected housing market and manufacturing data, while the unemployment rate has fallen back to 8.3%, helping to restore confidence in the recovery. Good news have spilled over from overseas as well, seeing as how European lawmakers have moved forward with debt negotiations, although some questions marks still remain. All in all, the bulls have decisively taken charge at the start of 2012 and will look to sustain the optimism going forward.
The ETF industry is steaming with activity on all fronts; issuers have rolled out a basket of new and exciting products in the first month of trading alone, while also continuing to fill the product development pipeline. Inside ETF Edge, we break down all of the new additions to the ETP lineup, highlighting the important aspects of each and determining which products might be appropriate for which investors. January also saw several ETFs hit important milestones, putting dozens of new products into play for investors who face age restrictions within their portfolios.
The end point of 2011 presents an opportunity to break down the best and worst performers to date this year; our databank of over 1,400 exchange-traded products provides a flexible resource for investors to analyze the performance or products in every ETFdb Category.
Here’s a look at what’s inside this month’s ETF Edge:
- Actionable ETF Investment Ideas: Our team of experts looks back on how our January predictions played out and make several new forward-looking picks designed to take advantage of the improving economic environment.
- Coming and Going: In this section, we highlight the investment thesis behind each new ETP that launched in January, and also discuss which type of investors may be interested in some of the latest additions to the lineup.
- ETF Milestones: In this section ETF Edge, we highlight all of the ETFs that reached three-year and five-year milestones in January. For investors and advisors facing “age restrictions” or uncomfortable investing in products without a sufficient track record, this section is worth a closer look.
- ETF Spotlight: In this segment we highlight an ETF that is flying under the radars of most investors, but that may present an intriguing investment option in the current environment. This month’s spotlight focuses on an alternative, actively-managed ETF that is designed to deliver consistently uncorrelated returns.
- ETF Scorecard: This section includes a performance matrix that highlights how the combination of market cap exposure and weighting methodology can lead to very different bottom line results. Also, we take a look as how U.S., developed, and emerging markets have performed over the last month.
- Sector & Region Outlook: In this section, we take a look at pricing multiples across the U.S. economy and around the world, pointing out some apparent opportunities.
- Inside The ETFdb 60 Index: We take a look at the biggest gainers and losers in our all-ETF index for the first month in 2012.
- Now Is The Season To: This section takes a look at several small cap ETFs which employ unique strategies that may appeal to investors with a bullish outlook.
- ETF Performance Database: Year-to-date performance and expense data for all 1,400+ U.S.-listed ETFs, organized by ETFdb Category.